India has firmly rejected Nepal’s objections to the resumption of border trade through the Lipulekh Pass with China, asserting that Nepal’s territorial claims are historically unfounded and untenable. This disagreement arises from Nepal’s claims based on its updated constitutional map, which incorporates Lipulekh, Kalapani, and Limpiyadhura as integral parts of its territory, referencing historical agreements such as the Sugauli Treaty of 1816. India maintains that the Lipulekh Pass has been a trading route since 1954 and emphasizes the importance of dialogue for resolving boundary issues. The diplomatic tension is exacerbated by China’s lack of recognition of Nepal’s claims, as recent maps from Beijing position these disputed territories within India. While India seeks to strengthen its border security and trade links with Tibet, Nepal views its exclusion from trilateral consultations with India and China as a violation of its sovereignty, further complicating its diplomatic stance. The situation highlights the geopolitical significance of the Lipulekh area, intertwining national sovereignty, historical narratives, and regional power dynamics, with both nations navigating a delicate balance in South Asian geopolitics amidst rising cooperation between India and China.